Bookkeeping Bookkeeping is compulsory for all legal entities operating in Bulgaria. It has to be made according to Accountancy Act and applicable Accounting Standards.
Payrolls All legal entities have to conduct their payroll activities on a monthly basis. This applies for employees and management remunerations, their income tax and social security payments. The legal regulations are subject to an annual review and change.
VAT tax returns Any company with an annual turnover exceeding EUR 25 000 is a subject to the VAT regulations. Bulgarian value added tax is 20% and VAT reporting is on a monthly basis. Application for VAT recovery rules requires specific experience and adequate contacts with the tax administration.
Financial statements Any company has to prepare annual financial reports according to the Bulgarian Accounting Standards or (for joint stock or other big companies) according to the International Financial Reporting Standards. The reports of companies with turnover above EUR 1 000 000 are subject to compulsory audit.
Tax returns Any company has to prepare an annual tax return until March 31st of the following year. It requires application of several tax exemptions with financial effect into the next years. Tax regime may require tax application and payments in the course of the year. Other tax returns are required if company is in possession of real estates or automobiles. Individuals has to present their annual tax return until April 15th of the following year. It includes all incomes originated from Bulgaria that may or may not be subject to a double taxation treaty.
Consulting services:
Companies registration Foreign companies operating in Bulgaria have to register a subsidiary (limited liability company, joint stock company or other), branch or representative office. The subsidiaries are responsible with their assets and capital (minimum EUR 2 500 for a limited liability company and EUR 25 000 for a joint stock company). The branch is responsible with all parent company’s assets and capital. The representative office may perform only auxiliary activity and can be used for a contact and negotiation point, marketing center etc. This registration (depending on its type and employees) has to be established by registration at the tax administration, the social security administration, the statistical institute, the labour inspection, the personal data protection committee etc.
Tax audit protection We could represent you in case of tax or social security audit inspection before the respective authorities.
Compulsory financial audit Many companies (joint stock companies, these with turnover above EUR 1 000 000 etc.) have to prepare annual financial reports audited by Bulgarian certified public accountants. We could prepare your report, consult you in choosing your auditor or directly contact our partners-auditors on your behalf.
Legal and state authorities representation We can represent you in case of need, inspection or other administrative legal action.
Double taxation treaties implementation Bulgaria has signed more than 30 double taxation treaties. They differ substantially in their terms and require individual evaluation of their application, case by case. We recommend and we can do for your company a study of the tax administration’s position in advance in order to avoid further complications.
Tax planning Our tax planning consultations may include all business activities you plan in Bulgaria starting from choosing appropriate type of registration, review of the major commercial contracts, establishing the required financial procedures, training personnel etc. This may cover planning of corporate tax, double taxation treaty implementation, VAT, personal tax, customs duties etc. We will discuss in details various legal opportunities and their tax consequences.
Legislation development information We will inform you about legislation development in the field of our services that is applicable for your company.
Other services Other consulting services on your request as business planning, preparation of contacts with financial institutions, due dilligance, business evaluation, legal advices, consultation on software for accounting and management use, Bulgarian partners financial investigations etc.
